Keydata Corp. v. United States

205 Ct. Cl. 467, 504 F.2d 1115 (1974)

 

RULE:

Contracts of the federal government are normally governed, not by the particular law of the states where they are made or performed, but by a uniform federal law.

FACTS:

The United States entered into a lease for commercial space occupied by plaintiff tenant, which provided that plaintiff would surrender the premises by a given date. Plaintiff failed to vacate, and defendant rescinded the lease. The landlord assigned its rights to plaintiff, and plaintiff sued defendant, alleging illegal rescission, waiver, and estoppel. Both parties sought summary judgment on the rescission claim, and defendant sought summary judgment on the waiver and estoppel claims.

ISSUE:

Did the defendant have a right to rescind?

ANSWER:

Yes

CONCLUSION:

The court granted defendant U.S. summary judgment, holding that it had right to rescind lease, since court had the power to choose the "English" rule requiring a landlord to take prompt action to remove a holdover tenant within a reasonable time, as it was necessary that federal government leases be governed by a uniform federal law. The court denied summary judgment on plaintiff assignee's waiver and estoppel claims since fact issues remained.

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